Reliance closes ₹13,000cr AAA bond sale as SBI buys ₹5,000cr
Reliance Industries just wrapped up a huge ₹13,000 crore ($1.35 billion) bond sale, and SBI was the star buyer, picking up nearly 40% of the bonds (about ₹5,000 crore).
These bonds are rated "AAA" by Crisil and CareEdge and carry an annual coupon of 7.90%, making them pretty attractive for big investors.
Funds buy Reliance bonds en masse
Alongside SBI, big names like ICICI Prudential Mutual Fund and SBI Pension Fund also jumped in.
The rush is partly because companies want to lock in today's borrowing rates before a potentially tighter monetary-policy stance from the Reserve Bank of India, thanks to rising inflation from high energy prices.
With few high-quality long-term bonds available right now, these Reliance notes were hot property for banks and insurers looking for safe bets.